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Landmark Case

R.M. Investment & Trading Company Private Limited vs. Boeing Company

Fox & Mandal R.M. Investment & Trading Company Private Limited vs. Boeing Company

Boeing Company … Appellant


R.M. Investment & Trading … Respondent.

Decided on October 14, 1993/ February 10, 1994


The case revolves around R.M. Investment & Trading Company Private Limited (R.M.I.) and Boeing Company, R.M.I. had an agreement with Boeing to provide consultancy services for promoting aircraft sales in India. A dispute arose when R.M.I. claimed a commission from Boeing for a transaction with Air India, leading to a compensation suit filed by R.M.I. In response, Boeing sought a stay of proceedings under the Foreign Awards Act. Initially, the court granted an interim injunction and attachment before judgment in favor of R.M.I., but Boeing appealed and the Division Bench overturned the injunction and attachment order. R.M.I. appealed to the Supreme Court, which upheld the Division Bench’s decision. The Supreme Court considered factors like the court’s inherent powers, criteria for granting injunctions, proper application of law, and the balance of convenience. The court stressed the careful exercise of the power to grant injunctions and the need to weigh relevant factors. Ultimately, the appeal was allowed, setting aside the injunction and attachment. The court ruled in the favour of Boeing Company, represented by Fox & Mandal that R.M.I. had not provided sufficient grounds for the injunction and had delayed pursuing arbitration, resulting in an unfair outcome. The court also addressed the issue of appeal timing and awarded costs to Boeing.

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